#14 All about the Chasm Gap! | Pricing behaviour of Singapore’s Landed Market | NOTG E14

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– So we’re gonna talk about this very interesting gap

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that has occurred in the landed market,

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I’ve sort of invented a name.

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Now this Chasm Gap,

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has formed between the landed price index.

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Vis-à-vis the non-landed private housing price index

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for the past 11 years

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and that’s a very interesting thing to note.

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Everybody is commenting about why I’m wearing this tiger

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camouflage shirt today.

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Bye, Jenna.

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Really, ah?

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Hah?

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Jenna gained 10 followers after appearing on Nuggets On The Go.

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HAHAHAHAHA

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Jenna is still single and available

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for those who are interested to date her.

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HAHAHAHAHA

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Yeah, we’re filming this at 7 p.m.

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A lot of people are going off work already,

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so Mr. Daniel is still here with me,

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Always?

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– Welcome back to our Nuggets on the Go next episode.

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Very good to be back here

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and today we’re gonna talk again on the landed market,

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because last round we talked about

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the 11 ripple effects of the PLH model

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and then prior to that we talked about

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what might be some of the key micro trends of 2022.

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Very happy to be here, back with everybody.

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So today we’re gonna share some interesting

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notes that we shared during one of the recent landed webinars

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that we had on the deep dive series,

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especially on District 5.

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We’re not going to go down to detail

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on District 5’s landed enclave,

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we’re gonna talk about the general landed market as well.

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Allow me to share it some of the screen right here with you

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and I think that our motion graphics team will

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definitely do a fabulous job.

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So we’re gonna talk about this very interesting gap

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that has occurred in the landed market.

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Let me just bring up the graph for you.

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So this is a gap here, I’ve sort of invented the name,

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and I’ve just realized that I’ve been pronouncing it wrongly.

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It’s supposed to be pronounced as chasm, not chasm,

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so I’ve been pronouncing it as chasm.

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Wrong pronunciation, sorry, my bad, yeah.

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I’ve been having pronunciation issues for so many years.

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Okay, so this is a Chasm Gap.

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I was just like thinking about

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what word to use for this particular thing that I noticed

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just a couple of days back

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while preparing for the landed webinar.

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I decided to call it the Chasm Gap.

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Now this Chasm Gap,

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has formed between the landed price index,

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Vis-à-vis the non landed private housing price index

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for the past 11 years.

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And there’s a very interesting thing to note,

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because there’s gonna be some understanding

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that we can derive from this trend.

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If we notice, basically since 2010 quarter one,

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the split has started technically

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coinciding with a couple of different kinds

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of cooling measures.

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Let me bring you back to the cooling measures.

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So basically these cooling measures

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are very interesting as well because since 2010,

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after the onset of a couple of different rounds

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of cooling measures, for example,

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the very beginning of the Seller’s Stamp Duty,

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LTV 1, 2 and 3.

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When the Seller’s Stamp Duty started plus,

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the LTV then drops from 90% to 80%

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and then the second loan is from 70%.

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and then it drops further down to 60%.

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Since about 2010 when the LTV, SSD has started,

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basically this split occurs between the landed trend

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and pricing, landed price index, sorry,

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and the non-landed price index.

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And that has started the onset of this chasm gap.

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Now why is that important for us to note is because,

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when we track back to 2008

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before the Lehman Brothers crisis,

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technically speaking at that time,

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the dark colour blue line,

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which is depicted as the

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non-landed residential properties index.

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So during 2008 period, the blue colour is actually above

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the landed price index.

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In the past, non-landed seems to be

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at a higher price trend than landed

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and after the Lehman Brothers crisis

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and after the cooling measures

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start to be a bit more active and rampant.

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Because not only did,

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were there rounds of cooling measures from 2010,

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2013 was one of the heaviest rounds.

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Because the TDSR was implemented,

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ABSD was implemented heavily,

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LTV then further dropped down to 75%,

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that further reinforced this chasm gap.

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And that has been on set for the past 11 years.

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And something that’s very interesting is that

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if we notice the two trends follow one another,

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in the same movement,

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the in-between gap seems to be holding very well.

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And that has been for 11 years.

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Now when we see something for 11 years,

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we know that this trend is not temporary,

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because unlike in the past,

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in 2008 where non-landed was higher than landed,

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that was just quite short-lived,

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over about two to three quarters.

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And also there was another round in 1993 to about 1998.

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That was also the time where landed was above

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the non-landed gap.

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And then over the good SARS period from 2003

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all the way to 2006,

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basically these two lines has been quite sticky together.

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So what does this tell us,

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with 11 years that the two price indexes

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have not touched one another.

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Is that we can derive a few things.

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Number one, first observation,

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is that this chasm gap will likely continue,

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because when this gap is over 10 years,

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it will likely continue.

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The gap that the landed price has,

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in terms of premium level above the non-landed one,

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might also mean that, landed price

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might then take cue from non-landed pricing.

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But I would say that it’s a yes and no,

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and later I’ll explain why,

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but we can safely say that the non-landed pricing,

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will now form a very good support level

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for the landed property pricing.

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Maybe this gap will be even wider.

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We wouldn’t know.

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We think that apart from this,

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landed properties will start to become a class of its own.

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And what are some of the key reasons

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why it’ll be a class of its own.

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Now let’s have a look at a few key numbers over here,

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that I think is pretty interesting for you to note.

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Number one is that the available landed stock

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has always been hovering around 73,000 and 75,000

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in terms of what is available currently,

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plus some of the vacant ones.

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landed properties, basically most of the transactions

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take place in the resale market, new ones are very rare.

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New ones, to have batches of like a large enclaves

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of landed properties for sale,

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from developers is very rare because firstly,

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the land has to come directly from the developers in the past.

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Government is not releasing huge plots of land

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for pure landed homes anymore.

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They might be releasing certain plots,

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maybe for strata cluster developments and things like that.

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But most of the landed properties that are brand new,

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came from developers who buy up old properties,

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subdivide them, rebuild brand new ones.

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And that usually happens during the rejuvenation kind of process,

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within different kinds of enclaves,

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but as we look from 1995 until today, 26 years already,

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we are always hovering around the range

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of about 60,000 now we are at about 60,000-75,000.

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So it’s a very gradual increment

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and we always need to note is that,

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these 75,000 landed properties,

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they’re all sitting on the same land area

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throughout Singapore,

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and no matter how many subdivisions happens,

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we are still talking about

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the same amount of land plot sizes,

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in the whole Singapore space,

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in the whole Singapore landscape.

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When we look at what is available in non-landed stock,

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it is hovering right now at about 330K to 340k thereabout,

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of course every round there’s government land sales

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and things like that.

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En bloc, of course we are talking about,

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more units being created on the same plot of land,

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but let’s say government releases

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more government land sales,

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more tender bids and stuff.

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It will gradually increase as well,

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but we can see the government land sale is pretty much controlled.

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The very gradual fashion over the last two years.

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There’s a small increment, but not a lot.

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What does this mean is that,

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when we talk about the three classes

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of residential properties, landed properties,

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non-landed residential properties,

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basically private condos and apartments,

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and then we look at the largest available stock,

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which is HDB apartments at about 1.2 mil+-.

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We know that out of these three different ranges,

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the key reason why in the form of a real estate asset class,

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if we just talk about private property segment,

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landed versus non-landed,

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plus the fact that there’s this chasm now.

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What we think is that this,

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might be some of the observations

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that will be very interesting for you to note,

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is that if you have the buying ability

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to go for a landed property

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and you are in a phase of your

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career, life and family planning

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and things like that, and you have the capability,

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but you’re thinking about, “Should i go for landed property

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or non-landed property?”

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And let’s say you are okay with

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not having facilities for your kids,

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you don’t need the condo facilities

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and things like that.

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Just thinking about which asset class,

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might perform a little bit differently

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over the next five, 10, 15 years.

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This is our conclusion, is that

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we think that landed might be becoming a class of its own.

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It might be a better store of value,

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provided you have that financial ability

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to go for the landed property.

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Because this will then escalate further and further

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away from apartments and condominiums

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kind of asset quantum price.

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What this means is also that,

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there might be a reducing supply in the resale market,

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because the current owners that have bought earlier,

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knowing that now the landed market is pretty strong,

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over the past few years,

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they might not be so motivated to sell,

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and even if they were to sell,

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they will also continue to be in the landed market,

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unless they are in their retirement phase, whereby

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maybe the kids all moved out.

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They want to just cash out,

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go for a single-level condominium.

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If let’s say the family is in their

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30s, 40s and 50s,

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maybe they might not be so motivated to sell.

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Unless they are going for

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maybe a different kind of landed

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or maybe they want to buy a brand new one,

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or change location, things like that.

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So there might be a reduced supply in the resale market

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for landed properties based on the status and the price,

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kind of appreciation growth for landed properties.

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Second one is that, the cost of construction

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technically increases barrier to entry.

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Because cost of construction is

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basically making the product more and more premium,

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especially for the brand new ones.

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Let’s have a look at some of the

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00:09:34,800 –> 00:09:37,520
cost of construction, main causes.

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00:09:37,520 –> 00:09:38,920
Based on this article from Straits Times.

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00:09:38,920 –> 00:09:40,920
This talks about the four primary areas,

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00:09:40,920 –> 00:09:44,120
basically rising costs in terms of labour and salaries,

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00:09:44,120 –> 00:09:45,640
levies on foreign workers,

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00:09:45,640 –> 00:09:47,600
as well as building materials increment

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00:09:47,600 –> 00:09:49,240
and freight costs, in terms of shipping.

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00:09:49,240 –> 00:09:50,320
When we look at that,

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00:09:50,320 –> 00:09:52,600
this then make the product more and more premium because

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00:09:52,600 –> 00:09:55,160
it becomes more and more restricted and maybe

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00:09:55,160 –> 00:09:58,120
more costly to build landed properties. And thus,

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00:09:58,120 –> 00:09:59,000
when the costs increase,

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00:09:59,000 –> 00:10:00,640
because when we look at landed properties,

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00:10:00,640 –> 00:10:02,480
you are going for two things at one shot,

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00:10:02,480 –> 00:10:05,160
you’re looking at the construct on top of the land.

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00:10:05,160 –> 00:10:06,240
So you’re buying the land.

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00:10:06,240 –> 00:10:08,160
You’re buying the construct together.

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00:10:08,160 –> 00:10:09,960
If we talk about pure landed properties.

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So the third one is that, the buyer on this

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might then become more and more differentiated.

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00:10:14,120 –> 00:10:16,400
In terms of income level, in terms of holding power,

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00:10:16,400 –> 00:10:18,680
because let’s say if you are talking about a $4 mil

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00:10:18,680 –> 00:10:21,680
inter-terrace, 25% is $1 mil down payment,

280
00:10:21,680 –> 00:10:23,840
$3 mil, 75% loan.

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00:10:23,840 –> 00:10:25,800
So in terms of holding power it’s also

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00:10:25,800 –> 00:10:26,840
a little bit different.

283
00:10:26,840 –> 00:10:28,560
when we look at demand and supply

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00:10:28,560 –> 00:10:30,400
and look at the law of demand and supply.

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00:10:30,400 –> 00:10:32,880
When supply is limited over here

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00:10:32,880 –> 00:10:36,320
and supply is constant, pretty much constant as in

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00:10:36,320 –> 00:10:37,880
always around this range.

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00:10:37,880 –> 00:10:41,000
And even if to increase at a very slow pace,

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00:10:41,000 –> 00:10:44,040
if it’s constant and always about 70,000+,

290
00:10:44,040 –> 00:10:46,320
but demand seems to be rising.

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00:10:46,320 –> 00:10:47,600
And when demand rises,

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00:10:47,600 –> 00:10:50,200
price rises, because demand and supply work in a way

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00:10:50,200 –> 00:10:52,040
whereby the price rise,

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00:10:52,040 –> 00:10:53,960
is basically when demand is more than supply.

295
00:10:53,960 –> 00:10:56,000
So when we look at the price graph,

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00:10:56,000 –> 00:10:59,040
with this green colour graph going upwards,

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00:10:59,040 –> 00:11:01,720
it is pretty obvious that demand has picked up

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00:11:01,720 –> 00:11:03,080
in two manners.

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00:11:03,080 –> 00:11:04,760
One, is in a way whereby

300
00:11:04,760 –> 00:11:07,240
there has been changing behaviour ever since circuit breaker,

301
00:11:07,240 –> 00:11:09,000
people are going for bigger spaces and perhaps

302
00:11:09,000 –> 00:11:10,480
when they realised that,

303
00:11:10,480 –> 00:11:11,800
they’ll think that landed probably has become

304
00:11:11,800 –> 00:11:13,920
a more premium kind of choice.

305
00:11:13,920 –> 00:11:16,360
If you’re looking for more bedrooms, more livable space,

306
00:11:16,360 –> 00:11:17,840
little bit of indoor and outdoor

307
00:11:17,840 –> 00:11:19,880
with a car porch and side or backup

308
00:11:19,880 –> 00:11:22,360
or side, side or back garden.

309
00:11:22,360 –> 00:11:23,680
So sorry,

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00:11:23,680 –> 00:11:26,600
and volume is also a key indicator

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00:11:26,600 –> 00:11:28,240
of why demand has increased.

312
00:11:28,240 –> 00:11:29,960
And it’s not a key indicator of why, it is

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00:11:29,960 –> 00:11:32,440
key indicator that demand has increased.

314
00:11:32,440 –> 00:11:33,640
That’s why there’s more volume.

315
00:11:33,640 –> 00:11:35,920
When we look at thing that has happened in the market,

316
00:11:35,920 –> 00:11:38,160
basically the M2 money supply

317
00:11:38,160 –> 00:11:40,640
from United States M2 graph

318
00:11:40,640 –> 00:11:43,120
and money flowing into Singapore M2 money supply,

319
00:11:43,120 –> 00:11:45,080
which has then resulted in very low interest rate.

320
00:11:45,080 –> 00:11:46,440
And we look at all the couple of factors

321
00:11:46,440 –> 00:11:47,760
we’ve always been talking about,

322
00:11:47,760 –> 00:11:50,080
in the sense that Singapore is becoming a safe haven.

323
00:11:50,080 –> 00:11:52,760
Plus the fact that landed properties

324
00:11:52,760 –> 00:11:54,800
have a limited amount of supply.

325
00:11:54,800 –> 00:11:57,000
And yet having that gap,

326
00:11:57,000 –> 00:11:58,560
this is pretty distinct in nature.

327
00:11:58,560 –> 00:12:00,320
And thus we think that it’s now forming

328
00:12:00,320 –> 00:12:01,760
into a class of its own.

329
00:12:01,760 –> 00:12:04,280
And when you look at that and put everything together,

330
00:12:04,280 –> 00:12:05,600
what it means for you is that,

331
00:12:05,600 –> 00:12:07,640
if you are looking to buy a landed property,

332
00:12:07,640 –> 00:12:09,120
there are few things to look at.

333
00:12:09,120 –> 00:12:10,280
What is the first thing you look at?

334
00:12:10,280 –> 00:12:11,120
The first thing you look at is that,

335
00:12:11,120 –> 00:12:12,760
you want to look at the support level

336
00:12:12,760 –> 00:12:14,000
at the blue coloured line,

337
00:12:14,000 –> 00:12:15,520
how is the support level forming?

338
00:12:15,520 –> 00:12:17,960
We can refer back to the previous two episodes,

339
00:12:17,960 –> 00:12:19,960
that one, the episode before the ripple effects,

340
00:12:19,960 –> 00:12:20,960
look at that episode again,

341
00:12:20,960 –> 00:12:24,080
where we talk about this non-landed movement

342
00:12:24,080 –> 00:12:25,520
that might be possible in 2022,

343
00:12:25,520 –> 00:12:28,120
where the en bloc frenzy might return

344
00:12:28,120 –> 00:12:31,080
and surprisingly it seems to be like once every five years,

345
00:12:31,080 –> 00:12:32,520
when this returns, in fact

346
00:12:32,520 –> 00:12:33,360
it’s already returning,

347
00:12:33,360 –> 00:12:34,960
because there’s a lot of en bloc activities

348
00:12:34,960 –> 00:12:35,880
on the ground now.

349
00:12:35,880 –> 00:12:39,280
Government land sales might hit a new, different price level.

350
00:12:39,280 –> 00:12:41,720
When we look at developers topping up their land bank,

351
00:12:41,720 –> 00:12:43,320
if this is stable,

352
00:12:43,320 –> 00:12:44,760
in the sense that the blue line is stable,

353
00:12:44,760 –> 00:12:46,720
then landed property might continue

354
00:12:46,720 –> 00:12:48,360
to go on a very gradual uptrend.

355
00:12:48,360 –> 00:12:51,760
So we think that both graphs for non-landed and landed,

356
00:12:51,760 –> 00:12:55,120
will continue to be a very gradual uptrend in 2022.

357
00:12:55,120 –> 00:12:56,720
That will mean that, if let’s say

358
00:12:56,720 –> 00:12:58,960
you are looking to buy a landed property,

359
00:12:58,960 –> 00:13:00,680
there are a few key things for you to look at.

360
00:13:00,680 –> 00:13:04,120
One is that, try to future proof your exit.

361
00:13:04,120 –> 00:13:06,480
That means the type of landed property

362
00:13:06,480 –> 00:13:08,160
is very important in the sense that,

363
00:13:08,160 –> 00:13:10,480
if let’s say you’re going for a brand new one,

364
00:13:10,480 –> 00:13:12,800
now all brand new ones definitely come with lift,

365
00:13:12,800 –> 00:13:13,960
it’s quite a norm already,

366
00:13:13,960 –> 00:13:16,360
that developers already know the preferences of buyers.

367
00:13:16,360 –> 00:13:18,000
So the lift definitely is a very,

368
00:13:18,000 –> 00:13:19,960
I would say, essential item.

369
00:13:19,960 –> 00:13:21,800
So the lift is basically to future-proof,

370
00:13:21,800 –> 00:13:22,720
so that in 10, 15 years’ time,

371
00:13:22,720 –> 00:13:24,800
when you are going to exit, the next buyers

372
00:13:24,800 –> 00:13:26,200
they will also be looking at all these things,

373
00:13:26,200 –> 00:13:27,240
that they want in the home.

374
00:13:27,240 –> 00:13:30,400
Try to go for a minimum amount of bedrooms if possible,

375
00:13:30,400 –> 00:13:32,440
five at least, ceiling height

376
00:13:32,440 –> 00:13:35,200
if it’s maximised building enveloped construction

377
00:13:35,200 –> 00:13:36,800
architecture, that would be beautiful,

378
00:13:36,800 –> 00:13:39,640
the more cars that you can park the better, for multi-gen.

379
00:13:39,640 –> 00:13:41,600
We think that in terms of,

380
00:13:41,600 –> 00:13:44,240
this is also extremely important, we’ve shared that before,

381
00:13:44,240 –> 00:13:46,200
in one of our Nuggets On The Go is that,

382
00:13:46,200 –> 00:13:48,800
if you head down to any districts and do homework,

383
00:13:48,800 –> 00:13:50,440
thinking about what kind of landed property to buy,

384
00:13:50,440 –> 00:13:53,480
whether should you buy the category one to rebuild,

385
00:13:53,480 –> 00:13:54,960
category two to do A&A,

386
00:13:54,960 –> 00:13:57,400
category three, to do some renovation

387
00:13:57,400 –> 00:13:59,600
or category four to buy brand new and brand new.

388
00:13:59,600 –> 00:14:03,880
Write down, what is the current asking price averagely,

389
00:14:03,880 –> 00:14:04,720
of the type of landed home.

390
00:14:04,720 –> 00:14:07,600
So for example, if let’s say this is in District 15,

391
00:14:07,600 –> 00:14:08,440
just an example,

392
00:14:08,440 –> 00:14:10,000
this does not represent any particular district.

393
00:14:10,000 –> 00:14:12,160
We just do it for educational purpose.

394
00:14:12,160 –> 00:14:13,080
So for example, Iet’s say

395
00:14:13,080 –> 00:14:14,600
if you are heading on District 15,

396
00:14:14,600 –> 00:14:16,400
looking at inter-terrace,

397
00:14:16,400 –> 00:14:18,840
write down the quantum pricing at the bottom,

398
00:14:18,840 –> 00:14:20,760
averagely based on what you have researched

399
00:14:20,760 –> 00:14:22,840
on some of the portals and things like that.

400
00:14:22,840 –> 00:14:25,800
And then compare that back one year ago,

401
00:14:25,800 –> 00:14:27,640
with the transacted prices.

402
00:14:27,640 –> 00:14:29,360
Of course, you have to do a deeper amount of homework.

403
00:14:29,360 –> 00:14:30,960
That means you need to look at the transacted

404
00:14:30,960 –> 00:14:33,120
with the house number, go to Google street view,

405
00:14:33,120 –> 00:14:34,600
look at a house quality, you look at

406
00:14:34,600 –> 00:14:36,880
how is it like and things like that.

407
00:14:36,880 –> 00:14:40,120
And try to see what has been the percentage change,

408
00:14:40,120 –> 00:14:43,720
on each particular type of landed home for the past 12 months,

409
00:14:43,720 –> 00:14:47,280
and try to make sense that should it be more worthy to buy

410
00:14:47,280 –> 00:14:50,480
the one with the lesser percentage increase,

411
00:14:50,480 –> 00:14:51,960
or the higher percentage increase?

412
00:14:51,960 –> 00:14:53,640
I mean, for me, is that example,

413
00:14:53,640 –> 00:14:54,880
if let’s say I want to buy a brand new,

414
00:14:54,880 –> 00:14:57,640
I already have intention to buy a brand new landed property,

415
00:14:57,640 –> 00:14:59,440
or I have an intention to build my own.

416
00:14:59,440 –> 00:15:01,640
Let’s say I want to buy an old one and rebuild it.

417
00:15:01,640 –> 00:15:04,320
I think that if you are not architecture sensitive,

418
00:15:04,320 –> 00:15:06,920
you are not really very particular about,

419
00:15:06,920 –> 00:15:08,200
particular construct or architecture

420
00:15:08,200 –> 00:15:09,080
feel of the home,

421
00:15:09,080 –> 00:15:10,480
you’re okay to buy something off the market

422
00:15:10,480 –> 00:15:11,840
and you want to save time

423
00:15:11,840 –> 00:15:13,520
to focus on your business and profession.

424
00:15:13,520 –> 00:15:15,480
Then I think it might be better

425
00:15:15,480 –> 00:15:16,800
to go for the brand new, brand new type.

426
00:15:16,800 –> 00:15:19,320
Because the increment based on this example

427
00:15:19,320 –> 00:15:21,400
from $5 mil to $6 mil,

428
00:15:21,400 –> 00:15:22,640
on the same type of property,

429
00:15:22,640 –> 00:15:24,320
although price has risen.

430
00:15:24,320 –> 00:15:26,360
But we know that if let’s say,

431
00:15:26,360 –> 00:15:28,840
price continues to move in the very gradual fashion.

432
00:15:28,840 –> 00:15:30,760
And if let’s say, you are priced out of the market,

433
00:15:30,760 –> 00:15:32,280
technically speaking, let’s say last year,

434
00:15:32,280 –> 00:15:33,800
if you had $4.5 mil,

435
00:15:33,800 –> 00:15:35,400
you could have bought a third category,

436
00:15:35,400 –> 00:15:37,600
kind of landed property in this particular enclave.

437
00:15:37,600 –> 00:15:39,280
But maybe if you were to wait out 12 months,

438
00:15:39,280 –> 00:15:41,000
because you’re trying to time the market,

439
00:15:41,000 –> 00:15:43,520
you will now be only able to buy the second category

440
00:15:43,520 –> 00:15:44,360
of landed properties,

441
00:15:44,360 –> 00:15:46,280
this is the example that we always share

442
00:15:46,280 –> 00:15:47,800
on not to time the market,

443
00:15:47,800 –> 00:15:50,120
because if this is your primary residence

444
00:15:50,120 –> 00:15:52,240
and landed property is a limited supply,

445
00:15:52,240 –> 00:15:54,400
with an ongoing increasing amount of demand,

446
00:15:54,400 –> 00:15:57,560
that it might make sense to hit into the market earlier on,

447
00:15:57,560 –> 00:15:59,520
based on this homework that you have done,

448
00:15:59,520 –> 00:16:00,520
and you compare back,

449
00:16:00,520 –> 00:16:02,520
if you are already planning to buy a brand new one

450
00:16:02,520 –> 00:16:04,360
and you are not architecture sensitive,

451
00:16:04,360 –> 00:16:05,960
you want to focus on your work

452
00:16:05,960 –> 00:16:07,720
and you don’t want to spend one and a half to two years

453
00:16:07,720 –> 00:16:08,560
to rebuild a home,

454
00:16:08,560 –> 00:16:10,200
then it might be better for you,

455
00:16:10,200 –> 00:16:11,680
to go for a brand new, brand new one.

456
00:16:11,680 –> 00:16:13,960
Because the $1 mil appreciation, it has happened,

457
00:16:13,960 –> 00:16:16,600
vis-à-vis the original price only 20%.

458
00:16:16,600 –> 00:16:19,760
But if let’s say, you go for an older version,

459
00:16:19,760 –> 00:16:22,400
the $1 mil over the $3 mil original price

460
00:16:22,400 –> 00:16:23,760
it is a 33% increase,

461
00:16:23,760 –> 00:16:26,320
and there is a higher percentage increase in my perspective,

462
00:16:26,320 –> 00:16:30,200
because the 33% that I paid in premium,

463
00:16:30,200 –> 00:16:32,640
plus my potential construction costs,

464
00:16:32,640 –> 00:16:36,640
that I’m going to sink in about $1.5 mil plus rental.

465
00:16:36,640 –> 00:16:38,520
And that’s going to take two years of my life.

466
00:16:38,520 –> 00:16:41,080
And total, maybe I’ll spend $5.8 mil

467
00:16:41,080 –> 00:16:43,440
then I might just go for a brand new one.

468
00:16:43,440 –> 00:16:45,480
Which the amount of percentage increase,

469
00:16:45,480 –> 00:16:47,600
is technically lower than the 33%.

470
00:16:47,600 –> 00:16:49,760
So that’s just one of the ways that I see it,

471
00:16:49,760 –> 00:16:51,400
but this is based on scenario,

472
00:16:51,400 –> 00:16:53,160
because if you are architecture sensitive,

473
00:16:53,160 –> 00:16:54,080
you want to build your own,

474
00:16:54,080 –> 00:16:56,680
then it might be more worthy to go for this version first,

475
00:16:56,680 –> 00:16:58,520
because you already have a set of design,

476
00:16:58,520 –> 00:16:59,680
number of bedrooms that you want, things like that.

477
00:16:59,680 –> 00:17:01,840
Then it’s all good and fine. So at the end of the day,

478
00:17:01,840 –> 00:17:02,920
it’s really based on your preferences.

479
00:17:02,920 –> 00:17:06,160
Disparity effect, we think that if you’re planning to exit,

480
00:17:06,160 –> 00:17:08,480
then make sure that the type of real estate,

481
00:17:08,480 –> 00:17:11,560
whether is it an apartment or condo, or a landed,

482
00:17:11,560 –> 00:17:12,960
try to find the type.

483
00:17:12,960 –> 00:17:13,800
And let’s say, example,

484
00:17:13,800 –> 00:17:15,520
if we’re talking about condos and apartments,

485
00:17:15,520 –> 00:17:18,000
make sure that you go through all the criterias

486
00:17:18,000 –> 00:17:20,360
as much as you can to tick off as much Check boxes as you can,

487
00:17:20,360 –> 00:17:21,720
to make sure that the buyer audience,

488
00:17:21,720 –> 00:17:22,800
five to 10 years’ later,

489
00:17:22,800 –> 00:17:24,680
will be a pool of buyer audience

490
00:17:24,680 –> 00:17:26,520
that might buy over your property.

491
00:17:26,520 –> 00:17:27,720
If you are talking about landed,

492
00:17:27,720 –> 00:17:29,240
smaller land become the norm,

493
00:17:29,240 –> 00:17:31,360
strategy is really to future proof your home.

494
00:17:31,360 –> 00:17:33,080
And of course, the third thing is that

495
00:17:33,080 –> 00:17:35,840
if you are not design sensitive,

496
00:17:35,840 –> 00:17:39,000
then go for new ones (brand new types), because rebuilding a home sometimes,

497
00:17:39,000 –> 00:17:40,760
is really a full-time job.

498
00:17:40,760 –> 00:17:42,480
All right. So we’re coming to the end of this episode.

499
00:17:42,480 –> 00:17:45,240
We hope that you’ve enjoyed this very mini episode,

500
00:17:45,240 –> 00:17:47,880
on some of the latest trends in the landed market,

501
00:17:47,880 –> 00:17:49,760
especially this term called the chasm gap,

502
00:17:49,760 –> 00:17:50,880
that we’ve just noticed.

503
00:17:50,880 –> 00:17:53,600
11 years since the two lines have touched.

504
00:17:53,600 –> 00:17:54,880
We hope to see you in the next episode.

505
00:17:54,880 –> 00:17:56,520
And of course, if you need any materials

506
00:17:56,520 –> 00:17:57,440
over the past few episodes,

507
00:17:57,440 –> 00:17:59,760
we have a couple of materials already done for you.

508
00:17:59,760 –> 00:18:01,920
And this will help you with a little bit more research.

509
00:18:01,920 –> 00:18:04,200
If let’s say, you’re hunting for a landed property,

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a new launch property or resale condo.

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So feel free to get in touch with us.

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The email is also right here at [email protected]

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If you need to ask any questions, feel free to let us know.

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Our senior team will be very happy to answer you.

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And meantime, take care and stay safe. Cheers.